One of the main reasons why blockchain technology has taken the world by storm is its high level of security. In fact, it is said that because of the way blockchains operate and the way they store information nothing can change or manipulate the data they contain.
In other words, blockchains supposedly cannot be hacked.
But is that really the case or are we dealing here with some really good marketing? Can a blockchain actually be hacked by a very skilled hacker with the right equipment?
The answer to that is quite interesting, so allow us to explain to you the main points you need to know about this issue.
How blockchains work
In order to analyze potential attacks on various blockchains by hackers, we need to know how blockchains work. Essentially, they are ledgers in which transactions are recorded in such a way that this data cannot be altered in any way later on.
Since public blockchains rely on the hash power, i.e. the power of the computers belonging to miners dedicated to mining new coins, controlling more than 50% of that can give a hacker control over the blockchain.
This is known as a 51% attack.
The reason why this attack is viable in some cases is that every transaction has to be verified by a consensus. In other words, most members of the network have to agree that a transaction is good.
However, 51% attacks are essentially impossible to perform against things like Bitcoin. Blockchains like that simply have too much hash power and miners for an attack like that to be viable.
Attacks on exchanges
A potential weak spot in the whole cryptocurrency environment are the exchanges where people try to trade their virtual currency for some other virtual or real-world money. Some of these exchanges have been known to have lacking security systems, and hackers were very much ready to seize the opportunity.
One of the main reasons for this is that cryptocurrency exchanges often don’t have enough staff to keep up with the necessary system maintenance. It’s enough for one employee to have their account breached for some huge damage to occur – in cases like this, the amounts of money stolen are often measured in millions of dollars.
However, should you ever find yourself in a situation where you need to exchange your cryptocurrencies and want to do so through a reliable and secure channel, just click here and you will be able to safely change as much virtual money as you want. There is a way to move your funds across any chain AND avoid exchanges in the process.
So, while big crypto networks are indeed very safe precisely because of their size, there are other methods hackers can use to get their hands on a hefty sum of virtual coins. Keep them in a safe place and trade them only if you have to and through an exchange you know is perfectly secure. That’s the best way to avoid any unpleasant situations.
